2014 (10) TMI 854 - HC - VAT and Sales Tax

Situation where VAT Tribunal is not function - Punjab VAT - Challenge to the order of the Deputy Commissioner (Appeal) remitting the matter back to the assessing authority for passing a fresh order. - Counsel for the petitioner submits that if the VAT Tribunal has been constituted, the Tribunal may be directed to decide the appeals and during pendency of the appeals the draft order of the assessing authority may be kept in abeyance. Counsel for the State of Punjab fairly states that during pendency of the appeal, consideration of the draft assessment order by the assessing authority shall be kept in abeyance and shall await outcome of the appeals filed before the VAT Tribunal. Held that - We have heard counsel for the parties and dehors the merits of the controversy particularly averments in the writ petition as well as grounds raised in the appeals, which is admittedly pending before the VAT Tribunal, dispose of the writ petition by directing the VAT Tribunal to decide the appeals within three months from today.

Summary

Issues:
1. Challenge to orders passed by Deputy Excise and Taxation Commissioner remitting the matter for a fresh order.
2. Jurisdictional issue regarding the assessing authority's direction to proceed with assessment despite pending appeal before VAT Tribunal.

Analysis:
1. The petitioner challenged orders passed by the Deputy Excise and Taxation Commissioner remitting the matter for a fresh order. The petitioner approached the High Court as the Value Added Tax Tribunal was non-functional. The High Court entertained the writ petition and directed the assessing authority to proceed with the assessment, with the draft order to be produced before the Court on the next hearing date. The petitioner filed a Special Leave to Appeal, arguing that the assessing officer's draft order would be without jurisdiction and could render the pending appeal before the Tribunal infructuous. The High Court granted liberty to the petitioner to raise these issues before it. The Special Leave Petition was disposed of accordingly.

2. The State of Punjab's counsel submitted that with the constitution of the VAT Tribunal, the petitioner should pursue their appeals there. The petitioner's counsel requested the Tribunal to decide the appeals and keep the draft order in abeyance during the appeal's pendency. The State's counsel agreed to keep the assessing authority's draft assessment order in abeyance pending the outcome of the appeals before the VAT Tribunal. The High Court, after hearing both counsels and considering the pending appeals before the VAT Tribunal, directed the Tribunal to decide the appeals within three months from the date of the judgment. This decision disposed of the writ petition, emphasizing the importance of the Tribunal's timely resolution of the appeals.